Market insecurity

The national security bill, which is being prepared now, will contain provisions that would allow the government to nationalize a private company if it became subject to a hostile takeover and was seen as important to the country's security.

"There is a provision [in the bill] concerning a receivership rule and nationalization, but of course it is nationalization through a buyout. This is the last resort, but the Polish government has to have a proper tool," President Lech Kaczyński said. "It's not possible that we don't wield full control over our energy sector."

Prime Minister Jarosław Kaczyński also referred to the bill in a policy speech before a confidence vote on his coalition cabinet. "Poland needs an act on domestic security that would allow us to monitor all state-security issues. It will create institutions that can be used in cases where Poland's interests are threatened. This bill will come to parliament very soon," he said.

Experts point out that the law is aimed at protecting major Polish energy firms from potential takeovers by bigger Russian competitors. The President's office, which is responsible for the bill, refuses to reveal any details.

It is also not known exactly what companies might be concerned. However, last December the government designated 15 firms as strategic for the national interest and guaranteed a government veto to protect them being liquidated or moved to another state.

Among the 15, there are a number of WSE-listed companies, including PKN Orlen, Lotos, Polish Oil and Gas (PGNiG) and copper producer KGHM. Opposition parties have criticized the Kaczyńskis for sending the wrong signals to investors. (Reuters)